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Perry Ellis maintains strong balance sheet
21 Nov '08
5 min read
Balance Sheet and Liquidity review - The Company remains in outstanding financial position. Its recently renewed credit facility provides a maximum of up to $200 million based on collateral, with an initial availability of $125 million today, against which it is currently borrowing $48.2 million. Its debt-to-capital ratio at 43% is equal to the debt-to-capital ratio for the same period last year. Excluding the $33.1 million related to the acquisition of the women's contemporary businesses, the company achieved its tenth consecutive quarter of improvement in its leverage ratios by reducing its debt-to-capital ratio from 43% to 41% and its debt-to-asset ratio from 34% to 32% at the end of the third quarter last year.
"From a liquidity and leverage standpoint, Perry Ellis International continues to strengthen its balance sheet and is in an excellent position not only to weather the current macroeconomic difficulties, but to take advantage of the multiple opportunities we believe will be available once the uncertainty in the environment subsides," George Feldenkreis, Chairman and CEO, commented.
Inventories at $126.3 million increased by 3% compared to $122.6 million as of October 31, 2007, in line with the expected growth in net sales during the fourth quarter of fiscal 2009. Accounts receivable, at $149.2 million, increased by $2.6 million compared to the same period last year, also in line with revenue increases of 1.3% during the first nine months of fiscal 2009.
Mr. Feldenkreis continued, "We are conservatively managing our working capital. Both inventories and accounts receivable are in excellent shape and in line with our projections."
Nine months Operations Review - For the nine months ended on October 31, 2008 ("first nine months of fiscal 2009"), total revenues increased by 1.3% to $660.0 million from $651.5 million during the same period last year. The Company also improved gross profit margins by 52 basis points compared to the first nine months ended on October 31, 2007 ("first nine months of fiscal 2008").
Fiscal 2009 Guidance - The Company confirmed its previously announced fiscal 2009 earnings guidance in the range of $0.90 to $1.10 per fully diluted share, including one-time costs in the $0.10 to $0.15 range related to actions identified during the strategic review. The Company also confirmed its revenue guidance for fiscal 2009 in the $875 - $900 million range.
"From a liquidity and leverage standpoint, Perry Ellis International continues to strengthen its balance sheet and is in an excellent position not only to weather the current macroeconomic difficulties, but to take advantage of the multiple opportunities we believe will be available once the uncertainty in the environment subsides," George Feldenkreis, Chairman and CEO, commented.
Inventories at $126.3 million increased by 3% compared to $122.6 million as of October 31, 2007, in line with the expected growth in net sales during the fourth quarter of fiscal 2009. Accounts receivable, at $149.2 million, increased by $2.6 million compared to the same period last year, also in line with revenue increases of 1.3% during the first nine months of fiscal 2009.
Mr. Feldenkreis continued, "We are conservatively managing our working capital. Both inventories and accounts receivable are in excellent shape and in line with our projections."
Nine months Operations Review - For the nine months ended on October 31, 2008 ("first nine months of fiscal 2009"), total revenues increased by 1.3% to $660.0 million from $651.5 million during the same period last year. The Company also improved gross profit margins by 52 basis points compared to the first nine months ended on October 31, 2007 ("first nine months of fiscal 2008").
Fiscal 2009 Guidance - The Company confirmed its previously announced fiscal 2009 earnings guidance in the range of $0.90 to $1.10 per fully diluted share, including one-time costs in the $0.10 to $0.15 range related to actions identified during the strategic review. The Company also confirmed its revenue guidance for fiscal 2009 in the $875 - $900 million range.
Perry Ellis International Inc
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